Executive Summary
Lululemon reported a solid QQ2 2025, with revenue of $2.525B, up 6.5% year over year and 6.5% quarter over quarter. The company posted a gross profit of $1.477B and a gross margin of 58.5%, while operating income reached $523.8M and net income $370.9M, translating to an EPS of $3.10. Despite a modest year‑over‑year decline in operating income (-3.0%), the quarter delivered strong sequential earnings leverage, with operating and net income growing 19.4% and 17.9% QoQ respectively, supported by a tight cost structure and favorable product mix. The quarter’s cash generation remained robust: cash flow from operations was $328.7M, capex $177.9M, and free cash flow $150.8M. Management continued to allocate capital decisively, evidenced by $281.2M of common stock repurchased during the period, contributing to a net cash outflow for financing activities of $276.8M. The balance sheet remains healthy with cash and cash equivalents of $1.156B and total debt of $1.762B, yielding a net debt position of $0.607B. Overall, Lululemon’s QQ2 2025 results underscore durable profitability, strong liquidity, and a prudent approach to capital allocation even as growth decelerates from prior peaks.
Key Performance Indicators
Key Insights
Revenue: $2,525,219,000; Gross Profit: $1,477,202,000; Gross Margin: 58.50%; Operating Income: $523,814,000; Operating Margin: 20.74%; Net Income: $370,905,000; Net Margin: 14.69%; EBITDA: $653,266,000; EBITDA Margin: 25.87%; EPS: $3.10; Diluted EPS: $3.10; Weighted Avg Shares: 119.6 million; YoY revenue change: 6.50%; QoQ revenue change: 6.52%; YoY gross profit change: 4.60%; QoQ gross profit change: 6.80%; YoY operating income change: -3.04%; QoQ operating income change: 19.42%; YoY net income...
Financial Highlights
Revenue: $2,525,219,000; Gross Profit: $1,477,202,000; Gross Margin: 58.50%; Operating Income: $523,814,000; Operating Margin: 20.74%; Net Income: $370,905,000; Net Margin: 14.69%; EBITDA: $653,266,000; EBITDA Margin: 25.87%; EPS: $3.10; Diluted EPS: $3.10; Weighted Avg Shares: 119.6 million; YoY revenue change: 6.50%; QoQ revenue change: 6.52%; YoY gross profit change: 4.60%; QoQ gross profit change: 6.80%; YoY operating income change: -3.04%; QoQ operating income change: 19.42%; YoY net income change: -5.60%; QoQ net income change: 17.91%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.53B |
6.50% |
6.52% |
| Gross Profit |
1.48B |
4.60% |
6.80% |
| Operating Income |
523.81M |
-3.04% |
19.42% |
| Net Income |
370.91M |
-5.60% |
17.91% |
| EPS |
3.10 |
-1.59% |
18.77% |
Management Commentary
Transcript details were not provided in the data set. As a result, direct management quotes from the QQ2 2025 earnings call could not be extracted. In a full report, themes would typically include comments on growth drivers (branding, product cycles, and DTC mix), inventory management and supply chain efficiency, international expansion, and capital allocation pacing (including buybacks and potential dividends).
Forward Guidance
No explicit forward guidance is included in the provided data. Investors should monitor management discussions around: (1) cadence of revenue growth (organic and international), (2) gross margin trajectory amid changing input costs and product mix, (3) investments in direct-to-consumer, technology, and supply chain resilience, and (4) capital allocation strategy (buybacks vs. debt repayment vs. potential dividends). Given the quarterly cadence and historical leverage, the ability to sustain operating margin and free cash flow amid a more tempered top-line growth environment will be key factors to watch.